Question:medium

Which of the following is a financing activity for the purpose of preparing a Cash Flow Statement?

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Classification in Cash Flow Statement:
  • Operating Activities: Principal revenue-generating activities
  • Investing Activities: Purchase/sale of assets, interest/dividend received
  • Financing Activities: Changes in capital and borrowings, interest/dividend paid
Remember: Received \(\Rightarrow\) Usually Investing; Paid \(\Rightarrow\) Usually Financing (for non-financial companies)
  • Interest received
  • Dividend received
  • Royalties received
  • Interest paid on debentures
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The Correct Option is D

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